Why Is Carvana (CVNA) Up 3.1% Since Last Earnings Report?

Core Viewpoint - Carvana reported strong third-quarter earnings, surpassing estimates and showing significant year-over-year growth in revenue and profit metrics [2][3][4][5]. Financial Performance - Carvana's Q3 earnings were 64 cents per share, exceeding the Zacks Consensus Estimate and up from 23 cents in the previous year [2]. - Revenues reached $3.66 billion, beating the Zacks Consensus Estimate of $3.47 billion and reflecting a 32% increase year over year [2]. - Total gross profit was $807 million, a 67.4% increase year over year, with gross profit per unit (GPU) rising to $7,427 from $5,952 [3]. Segmental Performance - Retail vehicle sales totaled $2.54 billion, a 30.5% increase year over year, with the number of vehicles sold rising 34.2% to 108,651 units [4]. - Wholesale vehicle sales reached $786 million, up 28.9% year over year, with unit sales increasing 38.2% to 56,487 [5]. - Other sales and revenues grew 52.3% year over year to $326 million, although GPU in this segment was slightly below estimates [6]. Financial Position - As of September 30, 2024, Carvana had cash and cash equivalents of $871 million, up from $530 million at the end of 2023 [7]. - Long-term debt stood at $5.43 billion, a slight increase from $5.41 billion at the end of 2023 [7]. Outlook - Carvana anticipates a sequential increase in year-over-year growth of retail unit sales in Q4 2024 and expects adjusted EBITDA for the full year to exceed the previous guidance of $1-$1.2 billion [8]. - Recent estimates for Carvana have shown a significant upward trend, with a consensus estimate shift of 331.03% [9][10]. - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating expectations for above-average returns in the coming months [11].